I guess that the East coast is just that much closer to Ohio than is the West coast. As I passed them this morning, they were clearing about two feet of snow from their lot. But they obviously had to juggle what appeared to be a large inventory of vehicles.
UPDATE
I just checked my local dealer's website. They have 43 Civics (of which 13 are Coupes, mostly EX), 126 Accords, 21 Ridgelines, 40 CRVs, 63 Pilots, 37 Odysseys, 8 Elements and 1 S2000. Doesn't seem like much of an inventory problem there.
Another local dealer's website shows 37 Civics (10 of which are Coupes), 103 Accords, 24 Ridgelines, etc.
Clearly, supplies are up. That means that prices are becoming much more reasonable, with lots of room for negotiation.
I put a $500 deposit (refundable) for a Silver 2006 Civic SI yesterday at San Diego's Pacific Honda. And they offer the car $2K over the msrp for a total of $22,535. This is w/o Navi and w/o Summer tires. they expect a 1,5 month wait for the car to be delivered. However, I have been reading the forums and started to think that when the car arrives and I do my test drive, I will not be willing to pay more than MSRP. The dealer was telling me stories from other dealers in southern california which were asking almost $4k over the msrp. I have a 2005 Civic EX 2dr Special Edition and I am actually happy with my car. I am not that desperate for the SI and that,s why I will not agree to pay more than MSRP. We ll see what ll happen...
Well, you should tell that dealer what you plan to do. That way, they can either agree now, to sell it for MSRP or they can refund your deposit and reserve the car for someone else.
And based on your last paragraph, you don't sound all that serious anyway.
When the Si you have a deposit on comes in, you'll go in and test drive it. Then you'll say, "I'm not paying more than MSRP"
They'll smile and tell you adios...then call the next guy with an order and tell him that it's his lucky day. You'll probably be put out of the dealership in a New York minute.
If a dealership takes your order for 2K over MSRP, they expect you to hold your end of the deal. Put the shoe on the other foot...if they agreed to MSRP and when your car came in and they said "Nope 2K over MSRP" Why you'd get in a huff and bellyache that they are trying to rip you off etc.
This isn't to say that the dealer that's charging 2K over MSRP has any scruples or anything like that...just when you make a deal, then stand by it, or don't make it in the first place.
Whenever I take a deposit on an incoming car and the buyer asks.." Is this deposit refundable?" I assume I'm dealing with an uncommitted shopper.
Of course we refund deposits.
Sometimes on a hard to find car, the "buyer" will leave multiple deposits at several dealers. Then they will try to play one dealer against the other when the cars come in.
sounds like a good idea. Why not, most dealers promise that they will not be undersold by any other dealer. Then when you call them on it, they get upset. If 2 dealers brag that they will always beat another dealer, then why not have them prove it. After all, dealers play customers against each other. This is just business.
I know of one dealership in our area that says they will beat any deal. The problem is they have NO inventory and are fairly unscruplous in the dealings.
If this is "just buisness" to you, then don't get upset when you find yourself walking out the door because you didn't keep your end of the deal. Buying cars and dealing with everyday life should be one in the same. If your philosophy is to do this to a car dealer, then why not the grocery store? Department store? Internet Website? Hey maybe even your neighbors?
Thers nothing wrong with making a deal, theres everything wrong in not keeping it knowingly.
I guess this means a person can take up a great deal of a salesperson's time, agree to a deal, shake hands on it and leave a deposit on a car they don't really plan to buy?
Everyone that comes to the lot is a buyer. I treat them as such. However, if you want to sell me out for 50 bucks, let me know up front so I can refer you to a friend at a rival lot and get a 100 dollar bird dog instead of fifty bucks.
hello pakcikkayo, did you get the car? How was it?good experience... bad???? I'm considering to use this dealership myself, I live in DFW area, I would appreciate your response
" if they agreed to MSRP and when your car came in and they said "Nope 2K over MSRP "Why you'd get in a huff and bellyache that they are trying to rip you off etc. "
That's pretty much what one dealer did to me when the '99 Odyssey hit the floor. He gave me a price via email, which I then called him and agreed to, but when I went to pick it up he said "We think this is going to be a hot seller, so I can't let it go for that price, another $1K please".
It works both ways....... I used autobytel.com to get the quote and even complained to them that the dealer wouldn't honor his original quote, but to no avail.
Yep, I walked, couldn't do business with him. And ended up getting the Odyssey from another local dealer. Also, since then, he's been the LAST local dealer I've called when looking for another Honda. Since then I've bought a '99 CRV, '01 Accord, and '05 Civic, none from them.
The dealer that wouldn't honor his original price was Holler Honda in Orlando Florida. I ended up buying from Jimmy Bryan Honda in Longwood who was great to deal with.
I have had customers when they put in a order for a build or inbound unit start asking alot of questiosn...and I think that this might have something to do with it. Thye've been burned by a dealer before and don't want a repeat of that. Sometimes they'll be open about it all after we're sitting down and they are taking delivery of their car....the excuses that some dealers use for their inability to honor their commitment is appaling.
I'm also glad that you have rewarded the dealer who treated you honestly and openly with more business...thats the way it should be.
I am feeling pretty lucky, I ended up with a dealership to price me at 20.140, 4 hundred under the MSRP of 20,540. I went to 3 other dealerships and their mark ups were 3 to 4k over.I went with the Galaxy Gray out of the factory, no Nav. I waited for about 10 weeks. Good luck !
I wouldnt care if they tell me "adios." I can always find another dealer who would sell it MSRP. By the way, the dealer told me that this $2K markup is due to the current high demand on the SI. However, lets say in 10 weeks when the car arrives, the selling price might come down to MSRP. And also, they told they would match any other dealer's price. So paying the deposit is not fixing the price of the car. It just gives me a privilidge to test drive and decide on the car before anybody else.
I dont think they will do a special order for me with the deposit i put. they will just put a hold onto first car coming that matches my criteria for a period of 24 hours for me to test drive and decide on the car. They can't even exactly tell me when and how many cars they are gonna get. at least this is what they told me. and we did not shake hands on any deal and signed anything. They were very comfortable with this SI and even if i decide not to buy it, they know that there will be others who would agree to pay this $2K markup easily.
there is nothing wrong putting $2K markup on the car which has very limited production and high demand. i totally understand that. It is just me that I wouldnt feel comfortable to pay more than MSRP while driving an almost brand new 2005 car.
Ive bought two cars from MRM. They are a great dealer!!! Very fare pricing right off the bat. Im south of Tulsa and looked at the DFW dealers when i was buying my 05 Accord.They all seemed to be stupid high. and tacked on all the junk they could to a car like, mud flaps, pin stripeing, farbric and paint sealants, spoilers. All sorts of stuff. It was insane. Worse than the Tulsa dealers.
I was going to buy a SI from MRM. But they where dead set on MSRP for the SI's. I dont pay list for cars period. Dont care if they poooo gold dust in the glove box. I ended up with a Civic EX Sedan 5MT, Navi for $468 above invoice. Its suppose to be rare.
Dont let anybody fool you. Theres only one limited production Honda made. And that would be Insight. They are basicly built to order. Everyonce in a while a dealer will stock one or two. But they even had to wait for there Insight units. S2000's and SI's are just lower production cars. And you can bet if fuel prices dont sky rocket they will increase production. Honda would love nothing more than to flood the market with there pocket rockets and retake and own the market in that area. When the next gen Accord hits the dealers,,, SI's will be lot bait and the whole mess will start over again with Accord,,, you watch.
This sounds like an experience I recently went through with a dealer. Quoted me a "Special Internet Price" for a Civic in inventory. Went through the whole test drive. Then proceeded to claim that he made a mistake in his offer but would sell the car at the same price if I agreed to spend $500 on add ons that were worthless to me.
Obviously I left right after explaining to the GM that I was deceived and lied to.
And I was a returning customer!
I won't name names since I am not out to taddle on dealers. But just wanted to warn any customers out there to be wary of this tactic; to get deals strictly in writing and as exact as you possibly can before you invest time on any deal at the dealership.
One of these days many of these dealers will wish they stopped playing games with their customers. What goes around eventually comes around. A product doesn't always sell itself regardless of a dealer and its customer support. Smart, and experienced, buyers will move elsewhere, perhaps even to a different make of automobile.
American Honda Motor Co. should put a stop to such behavior by dealers, as it ultimately impacts their product.
I couldnt agree more!!!! Ive seen Toyota with there two fisted tatics run me off. I will never even look at a yota again. And yes Honda has the koreans breathing down there neck. This line of dealers are allowed to do there own thing is BS. They do have a contract with Honda Motor Company. and never ever let a salesperson tell you there loseing money if they quote you a good price. Published invoice is a game. Dealers give up abit publicly on hold back. Fact is,,, get a GM drunk or a dealer owner drunk and they spill beans. Theres more profit in cars than they will ever admit to. You forget. When this bunch is talking about invoice. There talking about portage or wholesale invoice. The reginal distro's get a cut on that money. Dealers dont cut there checks or bank transfers to Honda LTD dor cars... Its to the reginal rep or distric distro... ie portage. just one of there many scams. So if a dealer tells you they have no pull with the factory... They dont. Its the regione they deal with. Port of delivery is east liberty for my Accord and Civic out of Denver. bet there cut was 12% or better. Just like my sitro, wholesale and factory percentages in my sales game.... there all diff.
I know what you mean, as I was a new car salesperson for a time - while I was between jobs. Factory invoice means really nothing, as there is holdback, and other factory incentives and bonuses. If a dealer sells at MSRP, it's making a killing; if it sells at factory invoice, it's still making considerable profit when you factor in the holdback and incentive/bonus plans. I think "every" person who buys a new car should work as a new car salesperson at least once in their life - it makes new car negotiations much more interesting, and fun, from the perspective of the buyer.
I replied yesterday to psy but somehow can't find it. Maybe it's too long ot out of topic or something.
Anyhow, yes I got what I wanted from MRM. No hassle - in and out less than 2 hours. Just like what I wanted. Odometer was showing 9miles when I test drove it. It was 7 miles when it arrived according to the salesman, but becasue of trip to gas station, test,washer etc.
Price paid is $17783 OTD (TTL not included since I have to do that in Texas). Add all tax, tag, license would come out $19,014.
Will fo business with MRM again for my wife CRV...maybe next model refresh.
All in all, very satisfied. No issue found on the car so far. Perfect.
Are you saying that you personally, or the dealer only made $100. on that deal?? Either way, I don't believe it. There is no way that a dealer would only make that little on a transaction, regardless of what they would like us to think.
Civics have the least ammount of MANUFACTURER markup in them and it makes sense, its the volume vehicle. The dealership gets paid before salespeople do. Its called "pack"
most consumers are very uninformed on how we get paid. Some actually have told me that they thought I get ALL the profit over invoice......lol...i wish
That's the truth. ANY dealership who "Packs" new cars is NOT the place you want to work at...PERIOD.
We have salesmen who do their own dealer exchanges come to our store all the time...the topic generally turns to compensation. We had a guy in last week...this guy is from a dealertship that we will no longer do dealer trades with, but anyway, he said that last month their top guy sold 23 new Honda's and made $2,600. I can imagine that their turnover is probably 50% if not higher per year. When this salesmen was told that 23 per month here would equate to about 120K per year here...he asked if we are hiring. The answer was no.
There are some miserable marketplaces out there where every deal is a mini. The dealerships started the troubles years ago and now the empowered, cheap customers have turned those markets into garbage.
They run the full page screamer ads and have turnover like you wouldn't believe. In a store with 20 salespeople, the senior person has probably been there less than a year.
I recently interviewed a guy who was working at a nearby Ford store. I think he said they had 20 something people and he was the second senior guy with eight months under his belt.
It's a typical liner-closer store. When I drive by, I can see a line of salespeople waiting out front.
$100 to $150 commision is not unusual for a car salesperson's commission on a new car. $150 per new car was what I made when I sold a new Dodge or Jeep. Now, used cars, that's another matter.
It is pretty unusual for a car that is sold at MSRP... If you can't make more than a MINI off of that.. then what is the motivation to get the highest price out of the customer?
its not about getting the highest price, thats capitolism, its about making a commision that reflects the service provided. Consumers are on here everyday telling about prices they may have paid and the experiences but they do not take into consideration on the impact of spending hours with salespeople just to sell them out for 50 bucks to a dealer either in the same town or states away (which I do not understand)
Do you think that its fair to sell out a salesperson that does a good job just to save a 50-100 bucks when that is what I wouldve made??
If I were to turn the tables and put myself in the shoes of a customer, here is how I would buy a civic:
Go to the nearest dealership, see all the colors that I needed to compare, drive the 5spd and auto, choose one, offer MSRP plus tax lic. and fees and enjoy my new civic.
I would then send him/her a gift certificate or something to a restaurant or gas card or something for a good presentation and service.
I wouldnt do any of this emailing and calling and I certainly wouldnt just leave and then go to a dealership that I wouldnt get serviced at anyway just to save 50 bucks.
Comments
I guess that the East coast is just that much closer to Ohio than is the West coast. As I passed them this morning, they were clearing about two feet of snow from their lot. But they obviously had to juggle what appeared to be a large inventory of vehicles.
UPDATE
I just checked my local dealer's website. They have 43 Civics (of which 13 are Coupes, mostly EX), 126 Accords, 21 Ridgelines, 40 CRVs, 63 Pilots, 37 Odysseys, 8 Elements and 1 S2000. Doesn't seem like much of an inventory problem there.
Another local dealer's website shows 37 Civics (10 of which are Coupes), 103 Accords, 24 Ridgelines, etc.
Clearly, supplies are up. That means that prices are becoming much more reasonable, with lots of room for negotiation.
This is w/o Navi and w/o Summer tires.
they expect a 1,5 month wait for the car to be delivered.
However, I have been reading the forums and started to think that when the car arrives and I do my test drive, I will not be willing to pay more than MSRP.
The dealer was telling me stories from other dealers in southern california which were asking almost $4k over the msrp.
I have a 2005 Civic EX 2dr Special Edition and I am actually happy with my car. I am not that desperate for the SI and that,s why I will not agree to pay more than MSRP.
We ll see what ll happen...
no sense of urgency. We have about 7 civics, 7 accords, 0 RL's, many Ody's and a few Pilots, 1 SI and 0 s2000's
All of our products are priced based on inventory availiability, market value, time in stock(how long we ahve had it) and other various terms.
If I had such a large inventory, I could not have any urgency to make a deal.
And based on your last paragraph, you don't sound all that serious anyway.
When the Si you have a deposit on comes in, you'll go in and test drive it. Then you'll say, "I'm not paying more than MSRP"
They'll smile and tell you adios...then call the next guy with an order and tell him that it's his lucky day. You'll probably be put out of the dealership in a New York minute.
If a dealership takes your order for 2K over MSRP, they expect you to hold your end of the deal. Put the shoe on the other foot...if they agreed to MSRP and when your car came in and they said "Nope 2K over MSRP" Why you'd get in a huff and bellyache that they are trying to rip you off etc.
This isn't to say that the dealer that's charging 2K over MSRP has any scruples or anything like that...just when you make a deal, then stand by it, or don't make it in the first place.
Of course we refund deposits.
Sometimes on a hard to find car, the "buyer" will leave multiple deposits at several dealers. Then they will try to play one dealer against the other when the cars come in.
I can always smell this coming.
If this is "just buisness" to you, then don't get upset when you find yourself walking out the door because you didn't keep your end of the deal. Buying cars and dealing with everyday life should be one in the same. If your philosophy is to do this to a car dealer, then why not the grocery store? Department store? Internet Website? Hey maybe even your neighbors?
Thers nothing wrong with making a deal, theres everything wrong in not keeping it knowingly.
I guess this means a person can take up a great deal of a salesperson's time, agree to a deal, shake hands on it and leave a deposit on a car they don't really plan to buy?
I guess "values" have become old fashioned.
Everyone that comes to the lot is a buyer. I treat them as such. However, if you want to sell me out for 50 bucks, let me know up front so I can refer you to a friend at a rival lot and get a 100 dollar bird dog instead of fifty bucks.
lol
That's pretty much what one dealer did to me when the '99 Odyssey hit the floor. He gave me a price via email, which I then called him and agreed to, but when I went to pick it up he said "We think this is going to be a hot seller, so I can't let it go for that price, another $1K please".
It works both ways....... I used autobytel.com to get the quote and even complained to them that the dealer wouldn't honor his original quote, but to no avail.
I hope you walked out!
The dealer that wouldn't honor his original price was Holler Honda in Orlando Florida. I ended up buying from Jimmy Bryan Honda in Longwood who was great to deal with.
I have had customers when they put in a order for a build or inbound unit start asking alot of questiosn...and I think that this might have something to do with it. Thye've been burned by a dealer before and don't want a repeat of that. Sometimes they'll be open about it all after we're sitting down and they are taking delivery of their car....the excuses that some dealers use for their inability to honor their commitment is appaling.
I'm also glad that you have rewarded the dealer who treated you honestly and openly with more business...thats the way it should be.
http://hondanorth.com
I had his email right in front of him. He didn't deny anything, just said "things changed from yesterday".
By the way, the dealer told me that this $2K markup is due to the current high demand on the SI. However, lets say in 10 weeks when the car arrives, the selling price might come down to MSRP. And also, they told they would match any other dealer's price.
So paying the deposit is not fixing the price of the car. It just gives me a privilidge to test drive and decide on the car before anybody else.
I guess if you are comfortable with backing out of a deal you shook hands on than it's O.K.
I'm willing to bet this deposit WILL be refunded!
and we did not shake hands on any deal and signed anything. They were very comfortable with this SI and even if i decide not to buy it, they know that there will be others who would agree to pay this $2K markup easily.
there is nothing wrong putting $2K markup on the car which has very limited production and high demand. i totally understand that. It is just me that I wouldnt feel comfortable to pay more than MSRP while driving an almost brand new 2005 car.
I was going to buy a SI from MRM. But they where dead set on MSRP for the SI's. I dont pay list for cars period. Dont care if they poooo gold dust in the glove box. I ended up with a Civic EX Sedan 5MT, Navi for $468 above invoice. Its suppose to be rare.
Dont let anybody fool you. Theres only one limited production Honda made. And that would be Insight. They are basicly built to order. Everyonce in a while a dealer will stock one or two. But they even had to wait for there Insight units. S2000's and SI's are just lower production cars. And you can bet if fuel prices dont sky rocket they will increase production. Honda would love nothing more than to flood the market with there pocket rockets and retake and own the market in that area. When the next gen Accord hits the dealers,,, SI's will be lot bait and the whole mess will start over again with Accord,,, you watch.
Sorry for the ramble.
proceeded to claim that he made a mistake in his offer but
would sell the car at the same price if I agreed to spend
$500 on add ons that were worthless to me.
Obviously I left right after explaining to the GM that
I was deceived and lied to.
And I was a returning customer!
I won't name names since I am not out to taddle on dealers.
But just wanted to warn any customers out there to be wary
of this tactic; to get deals strictly in writing and as
exact as you possibly can before you invest time on any deal at the dealership.
American Honda Motor Co. should put a stop to such behavior by dealers, as it ultimately impacts their product.
Anyhow, yes I got what I wanted from MRM. No hassle - in and out less than 2 hours. Just like what I wanted. Odometer was showing 9miles when I test drove it. It was 7 miles when it arrived according to the salesman, but becasue of trip to gas station, test,washer etc.
Price paid is $17783 OTD (TTL not included since I have to do that in Texas). Add all tax, tag, license would come out $19,014.
Will fo business with MRM again for my wife CRV...maybe next model refresh.
All in all, very satisfied. No issue found on the car so far. Perfect.
My reply to your question yesterday got lost I think but it was long reply.
@#$%%^^&
They need an attorney to paper work????????
What is doc. fee?
I sold a 06 Civic at MSRP and only made 100 bucks after spending half the day on it.
Consumers: do not be misled by disgruntled salespeople that couldnt hack it.
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Civics have the least ammount of MANUFACTURER markup in them and it makes sense, its the volume vehicle. The dealership gets paid before salespeople do. Its called "pack"
read my above pst.
most consumers are very uninformed on how we get paid. Some actually have told me that they thought I get ALL the profit over invoice......lol...i wish
You only make $100 on $900 profit? Shewwwwww...
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We have salesmen who do their own dealer exchanges come to our store all the time...the topic generally turns to compensation. We had a guy in last week...this guy is from a dealertship that we will no longer do dealer trades with, but anyway, he said that last month their top guy sold 23 new Honda's and made $2,600. I can imagine that their turnover is probably 50% if not higher per year. When this salesmen was told that 23 per month here would equate to about 120K per year here...he asked if we are hiring. The answer was no.
There are some miserable marketplaces out there where every deal is a mini. The dealerships started the troubles years ago and now the empowered, cheap customers have turned those markets into garbage.
They run the full page screamer ads and have turnover like you wouldn't believe. In a store with 20 salespeople, the senior person has probably been there less than a year.
Turnover is a killer for any store.
And they come here to complain about the treatment they received after getting that "good deal".
I recently interviewed a guy who was working at a nearby Ford store. I think he said they had 20 something people and he was the second senior guy with eight months under his belt.
It's a typical liner-closer store. When I drive by, I can see a line of salespeople waiting out front.
No thanks!
If consumers can go on here and mostly and blantantly lie about experiences and pricing, why cant we tell our experiences.
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Do you think that its fair to sell out a salesperson that does a good job just to save a 50-100 bucks when that is what I wouldve made??
If I were to turn the tables and put myself in the shoes of a customer, here is how I would buy a civic:
Go to the nearest dealership, see all the colors that I needed to compare, drive the 5spd and auto, choose one, offer MSRP plus tax lic. and fees and enjoy my new civic.
I would then send him/her a gift certificate or something to a restaurant or gas card or something for a good presentation and service.
I wouldnt do any of this emailing and calling and I certainly wouldnt just leave and then go to a dealership that I wouldnt get serviced at anyway just to save 50 bucks.
Does any of this make sense??